CBSE Question Paper for Compartment Examination 2018-ECONOMICS (Code-58/C/1, 2, 3)

Code-58/C/1/2/3

                            Compartment Question Paper for Examination 2018

                                                            Class XII

 

ECONOMICS

Time allowed: 3 hours                                                                  Maximum Marks: 100                             

 

General Instructions:

 

(i) All questions in both the sections are compulsory.

(ii) Marks for questions are indicated against each question.

(iii) Question Nos. 1 – 4 and 13 – 16 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence each.

(iv) Question Nos. 5 – 6 and 17 – 18 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.

(v) Question Nos. 7 – 9 and 19 – 21 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.

(vi)Question Nos. 10 – 12 and 22 – 24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.

(vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible.

 

SECTION A

(Microeconomics)

One Mark Questions

 

1. What does a rightward shift of production possibility curve indicate?

 

2. Define marginal product.

 

3. Which of the following cost decreases continuously with increase in production?

(Choose the correct alternative)

(a) Total Variable Cost

(b) Marginal Cost

(c) Average Total Cost

(d) Average Fixed Cost

4. A firm is operating in a market where it can sell any quantity of a commodity at a given price. As more units of the commodity are sold, the relation between marginal revenue (MR) and average revenue (AR) is: (Choose the correct alternative)

 

(a) Average Revenue > Marginal Revenue (AR > MR)

(b) Average Revenue = Marginal Revenue (AR = MR)

(c) Average Revenue < Marginal Revenue (AR < MR)

(d) None of the above

Three Marks Questions

5. Define marginal opportunity cost. Discuss briefly the concept with the help of a numerical example.

OR

State any three assumptions on which a production possibility curve is based.

 

6. What is market demand? State any two factors causing “increase” in market demand.

Four Marks Questions

 

7. A 5% fall in the price of Good X, leads to a 10% rise in its quantity demanded. A 20% rise in price of Good Y, leads to a 10% fall in its quantity demanded. Calculate the price elasticities of demand of the two goods. Out of the two goods which one is more elastic?

 

8. Why are firms interdependent in taking price and output decisions under Oligopoly? Explain.

OR

Why is a firm under perfect competition a price taker and a price maker under monopoly? Explain.

 

9. A producer is said to be in equilibrium at that level of output at which marginal cost is equal to marginal revenue. Why? Is equality between marginal cost and marginal revenue sufficient to ensure equilibrium? Explain.

Six Marks Questions

10. Answer the following:

 

(a) Meaning and equation of budget line

(b) Meaning and equation of budget set

(c) Meaning of indifference map.

OR

If a consumer faces the Budget line equation:

20 X + 10 Y = 500

Answer the following questions:

(i) What will be the slope of budget line?

(ii) How many units would he be able to buy if the entire sum of ₹ 500 is to be spent on Good X only? Show calculations.

(iii) Construct a new budget line equation if the price of Good Y falls by 50%. Also, write the slope of the new budget line equation.

11. What is the difference between short run and long run functions? State the different phases of the short run production function on the basis of marginal product. Use diagram.

For blind candidates in lieu of Q. No. 11 only

What is the difference between short run and long run production functions? State the different phases of the short run production function on the basis of marginal product. Use a schedule.

12. Explain the meaning of excess demand with the help of a diagram. Discuss its effect on the equilibrium price.

Note: The following question is for the blind candidates only in lieu of Q. No. 12 

Explain the meaning of excess demand with the help of a schedule. Discuss its effect on the equilibrium price.

  

SECTION B

(Macroeconomics)

One Mark Questions

13. What is meant by money?

14. Define the revenue receipts of a government.

15. ________ is the main source of money supply in an economy. (Choose the correct alternative)

(a) Central bank

(b) Commercial banks

(c) Both (a) and (b)

(d) Government

16. Primary deficit is borrowing requirements of government for making ________:

(Choose the correct alternative)

(a) Interest payments

(b) Other than interest payments

(c) All types of payments

(d) Some specific payments

 

Three Marks Questions

17. If in an economy C = 500 + 0.9 Y and I = ₹ 1,000 crores.

(Where C = Consumption expenditure, Y = National income, I = Investment)

Calculate the following:

(i) Equilibrium level of income

(ii) Value of investment multiplier

18. Explain the role of bank rate in dealing with the problem of deficient demand.

OR

Explain the role of margin requirements in dealing with the problem of excess demand.

Four Marks Questions

19. Giving reasons, classify the following as Revenue expenditure and Capital expenditure :

(a) Subsidies

(b) Repayment of loans

(c) Expenditure on collection of taxes

(d) Expenditure on building a bridge

20. Explain how “non-monetary exchanges” are a limitation of the Gross Domestic Product (GDP) as an indicator of welfare.

21. Explain the “bankers’ bank” function of Central Bank.

OR

Explain the working of money multiplier with help of a numerical example.

Six Marks Questions

22. (i) Define “Real Gross Domestic Product.”

     (ii) Calculate Gross National Product at market prices by (a) expenditure method and

     (b) income method.

 

        

S.No.	Particulars	Amount
1)	Compensation of employees	100
2)	Private final consumption expenditure	200
3)	Rent	20
4)	Government final consumption expenditure	50
5)	Profits	10
6)	Interest	10
7)	Gross domestic Capital formation	60
8)	Net imports	10
9)	Consumption of fixed capital	20
10)	Net Indirect Taxes	30
11)	Net factor income from abroad	(-20)
12)	Change in stocks	10
13)	Mixed-income	110

23. Giving reason state whether the following statements are true or false:

(i) Average propensity to save cannot be negative.

(ii) Value of marginal propensity to consume can be greater than one.

(iii) Average propensity to consume can be greater than one.

24. Answer the following:

(a) Distinguish between ‘devaluation’ and ‘depreciation’ of domestic currency.

(b) Distinguish between autonomous transactions and accommodating transactions in the balance of payment. What is the significance of this distinction?

OR

Giving reason explain how the following will be entered in (a) current account or capital account and (b) on credit side or debit side of balance of payments:

(i) Imports of machinery

(ii) Investments from abroad

Note:

The above question paper for CBSE Economics for Compartment 2018- Code 58/C/1/2/3 combines the questions from all three sets so as to make it easy for the students to understand and analyse all the questions while preparing for their Board Examination. The questions on which set numbers are not mentioned belong to all three sets 58/C/1/2/3.

Original pdf. of Class XII Question Paper for Compartment Examination 2018- Code 58/C/1,2,3 is available on https://www.cbse.gov.in/cbsenew/question-paper.html